Radical Changes in Media Consumption Are Not Slowing Down

CyberLink Research Shows that a Majority of Households Have Owned or
Used at Least Five Digital Devices / Services that Are Taking Them Away
From Traditional TV Watching – Twice as Many in Affluent Families

2015 NAB Show

April 14, 2015 01:00 PM Eastern Daylight Time

LAS VEGAS--(BUSINESS WIRE)--New research released today during a press conference at NAB by CyberLink
Corp. (5203.TW), the world’s leading consumer multimedia software
company and maker of the best-selling PowerDVD media player, finds that
people are embracing a multitude of digital media devices and changing
their video, music, and general content consumption habits at a much
faster pace than they have in the past. More than 60% of households have
owned or used at least five digital devices or services that are taking
them away from traditional TV watching. More than half (55%) of those in
affluent families ($150,000 income and above) have owned or used at
least ten. This revealing research demonstrated how people are willing
to do almost anything, from purchasing multiple devices, to adopting
massive streaming habits, and even obtaining content illegally, in order
to enjoy media in their own way.To identify the causes of these
changing behaviors and better understand the frustrations and workaround
solutions users create to alleviate vexations, CyberLink commissioned
research firm YouGov
to study how consumers are adapting to the flurry of options available
to them at home and on the road.

"Media consumption habits are changing faster than anyone would have
predicted; hugely popular TV series like House of Cards are
produced by web streaming services, Game of Thrones is arguably
the most pirated TV series of all time, and while people are spending
less time in front of the TV, their overall media consumption is
increasing rapidly, thanks to smartphones and PCs,” said Alice H. Chang,
CEO of CyberLink. "As the leading provider of media playback solutions
for the PC, smart devices, and connected home systems, we are staying at
the forefront of these trends and constantly strive to create the
immersive, high quality, experience consumers want. The findings from
our research will not only serve as a guide as we continue to develop
the market’s best solutions, but also highlight how valuable media
playback solutions such as market-leading PowerDVD truly are.”

Additional key findings from the research include:

WiFi is the glue of home entertainment systems – Owners of
WiFi-connected TV sets (75%), NAS (74%), WiFi-connected music systems
(73%), and media playback softwares (77%) find these solutions to be
valuable. While there has been much hype about Apple TV, only 7% of
households have it integrated into their home entertainment system,
versus 13% for Roku and 12% for Chromecast.

People want an immersive experience while on the road – Not
surprisingly, 87% of smartphone owners consider it to be a valuable
asset. However, portable computers remain more valuable at 86% than
tablets, which are considered valuable by 80% of their owners. When we
combine the statistics for media playback software (valuable for 81%)
and headphones (valuable for 62%), it is apparent that people are
seeking a truly immersive experience.

Widely popular premium streaming systems are not without
frustrations – 56% of those who have ever owned or used a media
playing device or service claim they are not willing to compromise any
of playback quality, streaming or download speed. 64% find high
subscription costs frustrating, while 60% are frustrated by the fact
that video or audio quality gets inadequate at times, and 58% complain
that fast enough internet connections are not always available. This
does not include the frustration of being unable to enjoy content from
these services in off-line mode.

Majority of the population is facing significant media content
management concerns – 38% of those with issues managing their
media content claim their media collection is disorganized, with
content dispersed over multiple smartphones, computers, and storage
devices, when it is not collecting dust on bookshelves or in boxes.
Even worse, 55% are worried they will lose their content if the
devices on which it resides break down, and 49% are concerned they
will simply lose such devices and their content.

People are massively adopting workarounds, some of them illegal – The
most stunning findings of this research regard illegal streaming or
downloading. A whopping 27% of individuals surveyed freely admitted to
illegally consuming or having considered illegally consuming media.
People liberally borrow their friends’ streaming services passwords to
avoid costly subscription costs (55% of those who admit to having done
or considered some form of illegal consumption). They download or
obtain illegally movies and music in order to avoid costs and to enjoy
their media in full quality, across their home network and devices,
even when offline – in fact, 21% of Americans generally feel
comfortable consuming media illegally. Of those who have discomfort
about consuming media illegally in some situations, not even half
(45%) would feel uncomfortable downloading the content if they hadn’t
paid for it at some point in the past, and only a third would feel
uncomfortable if the downloaded content was meant for commercial
consumption.

Detailed infographics highlighting the research results are available here.

CyberLink offers an entire suite of PC software and mobile apps, all
aimed at enhancing how consumers create and enjoy digital media,
including PowerDVD
15, a new version of the world’s leading multimedia player which was
also introduced today at NAB 2015.

About CyberLink

Founded in 1996, CyberLink
Corp. is the world’s leading consumer multimedia software company.
Over 100 patented technologies that provide a solid foundation on which
to continuously revolutionize the way multimedia is experienced, and a
visionary outlook has allowed the company to grow rapidly. This
ultimately led to a record-breaking IPO on the Taiwan Over-the-Counter
Exchange (OTC: 5203) in 2000. CyberLink is currently listed on the
Taiwan Stock Exchange (ticker symbol: 5203.TW).

Research Methodology

CyberLink
commissioned accredited research agency YouGov
Plc to poll the views of a representative sample of 1,155 U.S.
adults. Fieldwork was undertaken between February 27 – March 2, 2015.
The figures have been weighted and are representative of all U.S. adults
(aged 18+). The research was carried out online.